MBC Group's H1 adjusted net profit of SAR 178M came despite weaker ad demand. CEO Mike Sneesby says Shahid will reach full-year profitability in 2026, ahead of plan.
MBC Group reported an adjusted net profit of SAR 178 million for the first half of 2026, CEO Mike Sneesby told Argaam. The figure strips out the accounting impact of share-price movements tied to the group's investments in ACSC and Anghami. Reported net profit was lower because of those movements.
Revenue faced softer advertising demand and the expiry of major broadcast and technical services contracts. Timing of revenue recognition on media projects also weighed. The group cut costs and improved efficiency in the second quarter. Gross profit margin rose to 34% from 30.8% a year earlier.
The MBC Shahid streaming platform is on track for full-year profitability in 2026, one year ahead of the original 2027 target, Sneesby said. Subscription revenue grew 23.3% in the first half. International subscriber revenue rose 12%.
Advertising revenue reflected a cautious market. Advertisers delayed campaigns and shortened booking cycles, the CEO said. Some sectors continued to invest. MBC retained most of its Ramadan advertisers. Geographic diversification through MBC MASR helped offset softness in other markets.
Content investment remains a priority. The group launched six Shahid Originals in the first half. Three titles – Hofrat Jahannam, Forsan Greih Season 2, and Mercato – each attracted more than one million viewers. Nine more Originals are planned for the second half. Sneesby said content spending would not materially change year on year.
The CEO listed priorities including cost discipline, selective investment in content and platforms, greater use of data and AI, improved monetisation, and operational excellence. The Al Narjis production facility expansion continues. Three studios are operational. A new control room was added in the second quarter.
MBC Shahid's accelerated path to profitability is a key milestone for the group. Sneesby said the platform would continue to invest in content and platform enhancements ahead of the Ramadan 2027 season.
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